Search AOL Mail
AOL Mail
AOL Favorites

Grocery store giants Albertsons and Safeway to merge

Grocery Store Giants Albertsons and Safeway to Merge

Some big changes might be happening at your neighborhood marketplace. HLN reports two of the country's biggest grocery stores are merging.

'Do you have an Albertsons or a Safeway near you? Albertsons is buying Safeway. No stores are expected to close. So it could create a chain of 2,400 stores with a quarter million employees.'

With that many stores, the chain is poised to become a major competitor to its rivals.

"The two companies say the merge will enable them to cut costs and offer competitive prices to consumers."

According to Bloomberg, the companies also expect the $9 billion deal will allow them to '...expand their reach amid mounting competition from Wal-Mart Stores Inc. and warehouse clubs, as well as online food sellers and delivery services.'

But one commenter on a KOMO article expressed concerns over the merger, saying:

'This is really bad news. Less competition means higher prices and less selection.'

KOMO did speak with one industry consultant- who thinks there's likely nothing to fear about the deal.

'I don't know that you're going to see them have the ability to actually raise prices in any way even though they'll be bigger and there will be more concentration.'

There are reports the Federal Trade Commission will likely require the newly merged chain to sell off some stores. If that's the case, others can buy them and diversify the market, keeping prices balanced.

Join the discussion

1000|Char. 1000  Char.
jeffrson13 March 07 2014 at 4:01 PM

Wasn't there a reason they broke up the telecom companies in the '80's? Even though, at this point, they've just all remerged together as Comcast.
The uneducated Regressive Right keeps thinking we're heading towards Socialism or Communism. Because they think all these mega-mergers is perfectly OK we are already in a Corporate Oligarchy.
Citizens United legalized bribing our politicians. Citizens United stated that People may contribute unlimited amounts to campaigns. And then stated that Corporations are also considered People. Therefore, Corporations are legally allowed to donate unlimited sums of money to political campaigns. And, thanks to Super PACS, those donations can be unlimited, anonymous, and Super PACS do not have to disclose expenditures.
This is why you don't see scandals about politicians receiving gifts from Corporations. Citizens United legalized it!

Flag Reply +1 rate up
larry March 07 2014 at 3:52 PM

Looks like there will only be one or two stores to shop at. I remember The Bell System breakup in the early 80's was considered illegal by NOT allowing competition it was considered a "monopoly" and was feared to create "price fixing". I don't see any difference in this case where the American people may end up with only one store to shop at, one Airline, one car manufacturer, one healthcare provider etc. etc. It will cause a monopoly and no choices, lack of competition and price fixing.

Flag Reply +1 rate up
1 reply
caingrinch larry March 07 2014 at 3:55 PM

yes like price fixing on gas prices

Flag Reply +1 rate up
davemlxl March 07 2014 at 3:51 PM

Great..now there will be every brand of frozen pizza ever made available

Flag Reply +2 rate up
jmagsds1 March 07 2014 at 3:39 PM

They have the highest prices
already,why do you think they
will raise them higher???

Flag Reply +2 rate up
Schneemausi March 07 2014 at 3:31 PM

noooooooooooooo please say it isn't so. I was so glad to move to a town where a Safeway was closer. Can't stand Albertson.

Flag Reply +3 rate up
Jennifer March 07 2014 at 2:54 PM

I have a vons AND an Albertsons right next to each other. I choose Vons for a reason.

Flag Reply +4 rate up
David S. March 07 2014 at 2:49 PM

Yawn.......that's business.

Flag Reply +2 rate up
deenashipman March 07 2014 at 3:58 PM

They're both overpriced. A perfect pair.

Flag Reply +2 rate up
Larna J. Keane; March 07 2014 at 2:43 PM

Safeway bought Dominicks: Now Albertsons is buying Safeway? Well, we all know what happened to the great Dominicks chain.......I used to work for them in Floral. It is my understanding that Jewel is owned by Albertsons. So, does that mean Jewel here in Chgo. area is rescuing the debunked Safeway Corp.? I seriously doubt that. But, I am glad it is not Safeway that is buying out Albertsons. For, when they bought Dominicks; they ruined a nice place to shop and work.

Flag Reply +1 rate up
kathleenlharris March 07 2014 at 3:52 PM

No, it's not communism. It's oligarchy. Look it up.

Flag Reply +1 rate up
aol~~ 1209600


More From Our Partners